1. DEFINITION AND INTERPRETATION:
Effective Date: The date on which the said agreement is accepted online by the farmer during his registration on the website.
Kappas: Farmer produce or seed cotton
Trade day: The day on which the actual trade transaction occurs between seller and buyer. The trading date including time is specified in our TTN number.
Farmer: Actual producer of cotton or who is registered in our website as Farmer with all the required details.
Ginner: Ginner is a person or group of persons having TMC standard Ginning mill by own/ lease/ hiring basis and is able to produce good quality lint bales as per international standards by procuring good quality raw material with quality conscious in each and every stage of Ginning process and deliver the goods as per agreed time.
Spinner: Spinner is a person or group of persons having standard Spinning mill by own/ lease /hiring basis and is able to produce good quality yarn as per international standards by procuring good quality raw material with quality conscious in each and every stage of Spinning process and deliver the goods as per agreed time.
TReDS: TReDS means Trade Receivables electronically Discounting System. It is an electronic platform for facilitating the financing / discounting the trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).
FOS Option Lint Bales: Farmer Option Sale is part of Normal market Option sale system. It is also called as SOS (Seller Option Sale). Here on every Monday, Wednesday and Friday [popularly known as MWF days] the farmer puts up his quote/ price and the buyer shall accept the said price if he wants to buy the stock on that particular day. Here, the seller can change his quote any time of that day and the buyer shall agree to the said quote.
SOS Option Lint Bales: Seller Option Sale is part of Normal market Option sale system. Here every Monday, Wednesday and Friday [popularly known as MWF days] the farmer shall put forth his quote/ price and the buyer shall accept the said price if he wants to buy the stock on that particular day. Here, the seller can change his quote any time of that day and the buyer shall agree to the said quote.
BOS Option Lint Bales: Buyer Option Sale is part of Normal market Option sale system. Here on every Tuesday, Thursday and Saturday [popularly known as TTS days] the buyer shall put forth his quote and the seller shall agree to sell the stock for the quoted price if he wants his stock to be sold on that day. Here, buyer can change his quote any time of that day and the seller shall agree to the said quote.
2. THE CLBT CONCEPT:
a) The Cotton Lint Bale Trader shall register with ICSINDIA as a customer for purchasing cotton bales from farmers through Trade Terminal 2.
b)CLBTcan buy Ginners bales through Trade Terminal 4
c) CLBT can buy other trader bales through Trade Terminal 6
d) CLBT can purchase cotton seed from farmers through admin direct allotment
e) CLBT can purchase seed from ginners & traders directly listed in their page in Direct seed buying link,
f) CLBT shall have to provide 20% margin money or Rs.5,00,000/- per 100 bales whichever is higher by RTGS to admin.
g) CLBT participates in online purchase (with Trade password) through various Trade Terminals as specified above.
h) CLBT have to pay balance 80% on the second day from the trade day by RTGS/ NEFT. Then only ICSINDIA shall instruct the supplier to ship the goods with full quality assurance.
3. SCOPE & CONDUCT OF WORK:
a) ICSINDIA shall display the cotton bales available under basic sale options of Normal sales through Trade Terminals 2, 4 & 6 with the farmers, Ginners and Traders respectively on daily basis along with HVI report.
b) CLBT may choose such cotton bales within stipulated time through their Trade password and confirm the deal online. The particular farmer, ginner or trader shall arrange the cotton bales accordingly and CLBT shall make the payment on the second day from the trade day as per fixed payouts of the farmer, ginners or traders.
c) CLBT can sell the purchased bales in MSP sales to Spinners or importers through Trade Terminal 5 and to other traders through Trade Terminal 6.
d) CLBT can see the quality report of the each Lot in website on Trade Terminals and confirm the quantity based on their cash flows while making sure that there shall not be any default in payments.
e) After receiving confirmation of online purchase by CLBT in Trade Terminals, a system generated Trade Transaction Number shall be sent by ICSINDIA to both buyer and purchaser through SMS/ mail to their registered mobile numbers.
f) On receiving it, the Ginner shall dispatch goods to CLBT and shall enter goods receipt information in the system.
g) Each farmer or RMG, SHG, JLG or FPO will mandatorily bring their crop of 475 to 525 quintals + 2% quantity to produce 170 quintals of lint or 100 bales of cotton bales [each 170 kgs] a lot which is famous system for selling and suitable for transportation through truck. So, the Traders shall select the bales as per quality and station of the farmer, Ginner or trader.
h)Cotton lint bales and cotton seed from the farmers shall be received with Sale invoice of ICSINDIA and from ginners or traders with their own invoice with abolition of AMC (Agricultural Market Cess) by the Government of India.
4. ICSINDIA AGREES TO:
5. THE COTTON LINT BALE TRADER AGREES TO:
6. PAYMENT TERMS:
ICSINDIA is the provider/ consignee of farmer crop, cotton bales and cotton seeds of ginners or traders. Only nominal charges of Rs.25/- per kg shall be charged by ICSINDIA as service charges and the GST on the cotton lint bales or cotton seed purchased will be over and above the price of such purchase.
In case of purchase by the cotton lint bale traders, 20% margin money shall be deposited to the bank account of ICSINDIA at the time of registration and the balance 80% shall be paid on the second day from the trade day.
In case of any default in payment from the end of CLBT, the margin money deposited by him shall be adjusted against the default and the deal shall stand as cancelled. The same shall be informed to the cotton lint bale trader through SMS/ mail.